Comments on: Don’t Save it all up for Retirement

By: bob

bob — Wed, 09 Apr 2008 20:54:31 +0000

@AJ
I remember answering your comment a few weeks ago, it must have gotten swallowed up in the black hole of comments!!

Anyway, I think you are doing great!! If I were in your shoes, I would lock in on and continue what you are doing and as your income starts to increase – start using that increase to enjoy life!!

Assuming you are investing in even decent funds, what you are putting away is going to leave you in good shape when you retire in a few decades.

hope that helps!!

By: AJ

AJ — Thu, 20 Mar 2008 05:29:19 +0000

I like this post. I just need a suggestion, I’m 26 years old and I just started my 401K and Roth IRA last year. I’m giving 10% to my 401K and I’m maximizing my Roth… but now I’m starting to feel that I’m putting too much and not seeing my hard earned money and constantly budgeting. Am I doing anything wrong?

By: bob

bob — Fri, 18 Jan 2008 18:17:19 +0000

@Dawn
I am sorry to hear that about your mom. My parents were similar to us as your dad was and I really appreciate that they were. Your story is just validation of the point the mexican fisherman was trying to make.

By: dawn

dawn — Fri, 18 Jan 2008 04:23:12 +0000

My dad spent probably more money than he should have taking my mom on a bunch of Caribbean cruises… and I remember my siblings and I kind of giving him grief about it. But he kept doing it for about 6 years… the absolutely LOVED those trips. Long story short, mom died suddenly at 58 yrs. old from a pulmonary embolism. Dad has those memories of those trips to hold on to… definitely more valuable than a FAT IRA.

By: Early Retirement Extreme

Early Retirement Extreme — Thu, 17 Jan 2008 21:11:05 +0000

I read this story before and I think it’s right on the money. I almost feel sorry for those who only contribute to a 401k/IRA because it’s locked in until they’re 60ish. I think saving and investing hard during one’s 20s is the way to go. This is early enough for compounds to be substantial due to the large principal. Therefore it affords more leisure time in one’s 30s, 40s, … a time where most people are working like crazy to pay off all the debt they accumulated in their 20s (student) and early 30s (mortgage).

By: Money Blue Book

Money Blue Book — Thu, 17 Jan 2008 19:27:40 +0000

Most definitely…I think it’s important to live it up on occasion within reason of course. Hoarding money in of itself isn’t the solution to a happy life.

By: bob

bob — Thu, 17 Jan 2008 18:26:47 +0000

@Becky
I don’t mind at all – have at it…

@Pinyo and Mrs. Micah
I agree, it is a tricky balance to figure out…

@Paul
Great comments, I did find it in 4HWW, which I really did enjoy, but you are right, it needs to be read with a filter – Tim isn’t a moral guide…

By: Paul

Paul — Thu, 17 Jan 2008 16:50:45 +0000

Yeah, that’s a good illustration. I think I saw that in The Four Hour Workweek. That’s kind of one of the main points of that book, the difference between his plan for life and what he calls the “Deferred life plan” (i.e. put your life on hold until you retire). As a Christian, I can say that book definitely has some interesting ideas, but some of the techniques border on deception, so you have to use discernment in reading it.

I terms of how to balance, what I try to do is just do some calculations. When will I retire and for how long? How much money do I expect to need per year? How much do I currently have saved? Based on a conservative return rate and inflation estimate, how much do I need to save per year to make up the difference? I’m not sure if that’s the best way, but it seems reasonable to me.

Also, I try not to get too beholden to my current situation. I’m not saying I’m there, but it’s easy to think, “I’d never find another job that pays this well or has this retirement plan,” or “Once I finish my Master’s degree, then I’ll really live my life.” There are lots of great opportunities out there, and if you really weigh your priorities and opportunity costs, you may find that your current situation is not the best it could be.

By: Pinyo

Pinyo — Thu, 17 Jan 2008 03:27:08 +0000

That’s a wonderful story. One thing that always nag me is whether or not save too much for retirement. I will have to think about this more. Great story. Great post.

By: Becky

Becky — Thu, 17 Jan 2008 02:03:51 +0000

Really good story. I hope you don’t mind if I link to it from my blog.
It is really hard to find that balance. For example, I would love to work fewer hours, but I’m already at the minimum (36/week) to keep my profit sharing, 401k match, health insurance, vacation time, etc. It’s a bit of a catch-22, and I’m not yet sure what the answer is…